Kioxia Stock Soars on AI Chip Demand Boom

Kioxia Holdings Corp. has experienced a remarkable surge in its stock value, rising 15% recently due to escalating demand for AI infrastructure. The company is now the world's best-performing major stock of 2026, with its shares up approximately 120% year-to-date. This ascent follows a substantial increase in 2025, making Kioxia a standout performer.

The heightened demand for memory chips, essential for AI training and data centers, is a primary driver. Kioxia's chips play a crucial role in processing the vast amounts of data required by AI applications. This trend is expected to lead to price increases for NAND and solid-state drives in 2026, as major tech firms anticipate a memory supply crunch.

Kioxia, originally a unit of Toshiba Corp., now projects operating income between ¥709.57 billion and ¥799.57 billion for the fiscal year ending March, surpassing previous estimates of ¥525.47 billion. Revenue is also anticipated to exceed ¥2 trillion for the first time. This recovery marks an extraordinary comeback since its IPO in 2024.

Further strengthening its position, Kioxia is collaborating with Nvidia Corp. to develop next-generation NAND technology. This partnership aims to enhance the efficiency of AI systems by optimizing data processing and storage alongside high-bandwidth memory chips. Analysts foresee continued growth, citing durable data center demand and a favorable supply-demand environment for NAND extending through 2026.